Question

If the supplies on hand at the end of January totaled $500 and the Supplies on Hand account before adjustment is $900, what should be the adjustment at month-end

Answer 1

Answer:

The adjustment at month-end is :

Supplies Expense $400 (debit)

Supplies $400 (credit)

Explanation:

The Supplies Account is an asset Account that decreases as the supplies are used in the business.

The use of supplies prompts the recognition of an expense and de-recognition of an asset as follows :

Supplies Expense $400 (debit)

Supplies $400 (credit)